Key Takeaways APLD posted a Q2 loss of 11 cents per share while revenues jumped 250% year over year to $126.6 million.APLD revenue growth was driven by HPC tenant fit-out at Polaris Forge 1 and Data Center Hosting growth.APLD has 600 MW under contract with two hyperscalers, representing about $16B in prospective lease revenue.Applied Digital (APLD) reported a loss of 11 cents per share in the second quarter of fiscal 2026, an improvement from a loss of 61 cents reported in the year-ago quarter. The figure m ...

Combined, management said the two North Dakota campus agreements represent 600 megawatts of lease capacity and approximately $16 billion in prospective lease revenue.The company also announced a 15-year lease described as roughly $5 billion with a “U.S.-based investment-grade hyperscaler” for 200 megawatts at Polaris Forge Two. Cummins said Polaris Forge Two is a $3 billion project near Harwood, North Dakota, with initial capacity expected in 2026 and full build-out in 2027.Cummins said the remainder of the ...

Applied Digital Corp. (NASDAQ:APLD) shares climbed in Wednesday's extended trading after the company released its second quarter earnings report, beating estimates on the top and bottom lines. Here's a look at the key figures from the quarter. APLD stock is moving. Watch the price action here.The Details: Applied Digital reported quarterly earnings of zero cents per share, which beat the analyst consensus estimate for a loss of 10 cents.Quarterly revenue came in at $126.59 million, which beat the Street est ...

Core Insights - Applied Digital (APLD) is restructuring its operations to focus on high-performance compute hosting, supported by long-term leases and a sustainable financing model [1] - The company operates two segments: a legacy Data Center Hosting Business and a High-Performance Compute Hosting Business, with the latter being the main growth driver [1] Segment Developments - At the Polaris Forge 1 campus, the expansion has reached a fully leased capacity of 400 MW with CoreWeave as the sole tenant, with lease revenue expected to start from late 2025 [2] - Polaris Forge 2 is under construction, with an initial capacity of 300 MW expected to be operational by 2026, and a U.S. investment-grade hyperscaler has leased 200 MW [2] Funding and Construction - APLD is utilizing asset-level financing structures to minimize corporate dilution, having drawn $112.5 million from a preferred equity facility and secured $50 million in equipment financing [3] - The company has 700 MW under construction across its campuses, with a targeted build cycle of 12 to 14 months [3] Revenue Transition - Current revenues are primarily from low-margin tenant fit-outs, but as facilities become operational, revenue will shift to multi-year lease agreements, enhancing earnings visibility [4] - APLD anticipates approximately $11 billion in contracted lease revenues from Polaris Forge 1 and about $5 billion from Polaris Forge 2 over 15 years [5] Financial Projections - The Zacks Consensus Estimate for fiscal 2026 revenues is $280.9 million, indicating a 30.4% growth from fiscal 2025, with an expected loss of 31 cents per share [6] - APLD's stock has increased by 187.1% over the past year, significantly outperforming the broader Zacks Finance sector [7] Competitive Landscape - APLD faces competition from major data center operators like Equinix, emphasizing the need for speed and innovative cooling designs in AI-focused infrastructure [8] - The company is transitioning from low-margin fit-outs to multi-year leases, with a total of $16 billion in leases across its Polaris Forge campuses [8]

Core Insights - Applied Digital Corporation (NASDAQ:APLD) is recognized as one of the 12 most promising blockchain and crypto mining stocks by hedge funds [1] - The company has signed a significant $5 billion, 15-year lease with a U.S.-based hyperscaler, enhancing its position in the AI infrastructure sector [2] - This lease covers 200 MW at the Polaris Forge 2 campus in North Dakota, increasing the total leased capacity at Polaris Forge 1 and 2 to 600 MW, which supports AI workloads [3] Financial Performance - Following the lease agreement, APLD shares rose by 4% in premarket trading [3] - Compass Point raised its price target for APLD from $13 to $30, maintaining a "Buy" rating, reflecting confidence in the company's growth prospects [3][4] Strategic Positioning - The investment firm's positive outlook is based on the full leasing of Polaris Forge 1 to CoreWeave and the successful hyperscaler lease at Forge 2 [4] - APLD's AI data centers are designed for high rack densities exceeding 120 kW, providing a competitive edge in the growing AI infrastructure market [4] Business Segments - APLD operates through its Data Center Hosting and HPC Hosting segments, focusing on digital infrastructure solutions for high-performance computing, blockchain mining, and AI customers in North America [5]

Financial Data and Key Metrics Changes - Revenues for Q1 fiscal 2026 were $64.2 million, an increase of 84% from $34.8 million in Q1 fiscal 2025, primarily due to $26.3 million from tenant fit-out services [18][19] - Adjusted net loss was $7.6 million or $0.03 per share, while adjusted EBITDA was $0.5 million compared to $6.3 million the prior year [20] - The company ended the quarter with $114.1 million in cash and $687.3 million in debt, excluding $362.5 million in proceeds from financing that occurred after the quarter [20][21] Business Line Data and Key Metrics Changes - The HPC data center hosting segment expanded its lease agreements with CoreWeave, increasing contracted revenue from approximately $7 billion to $11 billion over 15 years [4][5] - The blockchain hosting business operates 286 megawatts of fully contracted capacity across two North Dakota locations, with strong Bitcoin prices positively impacting customer sentiment [13][14] - The cloud services business is under strategic review and classified as held for sale, with no further updates provided until a definitive plan is established [14] Market Data and Key Metrics Changes - Publicly traded hyperscalers are projected to invest over $350 billion in AI data centers in 2025, highlighting unprecedented investment levels in AI infrastructure [8] - The industry recognizes that the limiting factor in AI infrastructure deployment is the availability of suitable data centers, referred to as AI factories [9] Company Strategy and Development Direction - The company aims to scale its operations significantly, with a goal of reaching $1 billion in net operating income (NOI) run rate within five years [22] - The company is focused on securing capital at the lowest possible cost and building repeatable financing structures to support data center development across the U.S. [16] - The company is actively evaluating new sites across additional states and regions to meet accelerating demand for data center infrastructure [23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of speed, reliability, and readiness in meeting the surge in demand for AI infrastructure [8] - The company believes it is uniquely positioned to meet the challenges of the market, having secured early construction crews and built strong relationships with local communities [10] - Management anticipates a potential shakeout in the market as new entrants may struggle to meet construction timelines, favoring proven vendors and developers [64] Other Important Information - The company has secured an initial $112.5 million draw from a $5 billion preferred equity facility with Macquarie Asset Management to advance construction of Polaris Forge 1 [15] - The initial development cost for Polaris Forge 2 is projected to be approximately $3 billion, with potential for future expansion [7] Q&A Session Summary Question: What are the largest remaining factors for project financing? - Management indicated that project financing will encompass both buildings at Polaris Forge, aiming for a facility that is competitive with market offerings [31] Question: What is the current status of power infrastructure at Polaris Forge 2? - Management confirmed that 280 megawatts of initial utility power is in place, with infrastructure being built to meet timelines for 2026 and 2027 [32] Question: Can you discuss the Macquarie Asset Management financing? - The financing allows the company to scale significantly, unlocking $20 to $25 billion of total capital for future projects while minimizing dilution for shareholders [40] Question: How does the company define its active pipeline? - The active pipeline includes projects that are expected to move into construction within the next six to twelve months, with ongoing work on permitting and power agreements [45] Question: What are the expectations for power availability in South Dakota? - Power is expected to be available in South Dakota in 2026, with the main gating item being a sales tax exemption for IT equipment [60]

Core Insights - Applied Digital (APLD) reported a fiscal fourth-quarter loss of 12 cents per share, consistent with expectations, compared to a loss of 52 cents per share in the same quarter last year [1][9] - The company achieved revenues of $38 million, reflecting a year-over-year increase of 41.3%, driven by enhanced capacity in its Data Center Hosting facilities [2][9] - APLD shares rose by 23.93% in pre-market trading following the earnings announcement [2][9] Financial Performance - Selling, general and administrative expenses surged by 114.8% year over year to $28.1 million [3] - Adjusted EBITDA for the quarter was $1 million, a significant improvement from a loss of $0.2 million in the previous year [3] - The adjusted operating loss narrowed to $3.1 million from $3.7 million year over year [3] Operational Developments - APLD's High-Performance Computing (HPC) Data Center Hosting business focuses on advanced data centers for high-performance computing and AI applications [4] - The company secured 15-year lease agreements with CoreWeave for 250 megawatts of capacity, projected to generate around $7 billion in revenue over the lease term [5] - Following the quarter's end, CoreWeave expanded its lease to 400 megawatts, with anticipated revenue reaching approximately $11 billion [5] Capacity and Infrastructure - As of May 31, 2025, APLD's Jamestown and Ellendale facilities were operating at full capacity, providing a total of 286 megawatts for crypto mining operations [6][9] - APLD has made progress in securing project financing for its Polaris Forge1 campus, raising approximately $268.9 million through various offerings [7] - The company has reduced projected build times for new facilities from 24 months to 12-14 months through process improvements [8] Financial Position - As of May 31, 2025, APLD had cash and cash equivalents totaling $120.9 million against a debt of $688.2 million [10]

Financial Data and Key Metrics Changes - Revenues for fiscal year 2025 were $38 million, up 41% year over year, driven by increased capacity in the data center hosting business [14] - Cost of revenues increased by $7.5 million to $30.2 million, also due to increased capacity [14] - SG&A expenses rose by $15 million to $28.1 million, influenced by business growth and increased stock-based compensation [15] - Net loss attributable to common stockholders was $26.6 million, or $0.12 per share, while adjusted net loss was $7.6 million, or $0.03 per diluted share [15] - Adjusted EBITDA for the quarter was $1 million [16] - The company ended the quarter with $120.9 million in cash and $688.2 million in debt [16] Business Line Data and Key Metrics Changes - The data center hosting segment operates 286 megawatts of fully contracted capacity for cryptocurrency customers [11] - The cloud services business is under review for strategic alternatives, with no updates provided [11] Market Data and Key Metrics Changes - The company signed a transformative 15-year lease with CoreWeave for 250 megawatts at the Polaris Forge One campus, expected to generate approximately $7 billion in contracted revenue [6] - The first 100-megawatt facility is scheduled to be operational in Q4 2025, with additional facilities planned for mid-2026 and 2027 [7][39] Company Strategy and Development Direction - The company aims to position itself as a leader in AI and HPC infrastructure, focusing on scalable solutions and efficient designs [6][9] - Strategic decisions include reducing the number of SKUs by approximately 50% and consolidating suppliers to enhance efficiency [7] - The company is actively marketing its multi-gigawatt pipeline to a diverse group of customers [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong relationships with hyperscalers and a robust pipeline of projects [19] - The company anticipates significant revenue increases in the upcoming quarters due to the technical fit-out of the Polaris Forge One building [17] Other Important Information - The company has raised approximately $270 million post-quarter through ATM and Series G preferred stock offerings [13] - Management highlighted the advantages of building in the Dakotas, including low-cost energy and efficient cooling systems [8] Q&A Session Summary Question: Development cadence for 2026 and potential groundbreaking for a second campus - Management expects to break ground on one additional campus and potentially two before the end of the year [22] Question: Additional color on financing timeline and gating items - The biggest gating item is the general slowdown in August, with reliance on professional service providers for construction reports and documentation [23][24] Question: Status of advanced negotiations with a customer - Management confirmed advanced negotiations with an investment-grade North American hyperscaler, with ongoing discussions with several others [30] Question: Fit-out status for the Ellendale facility - The fit-out is underway, with expectations for customer gear to be brought on-site in Q4 of this year [31] Question: Terms of project financing for CoreWeave - Financing terms are largely as expected, with costs in the high twos to low fours for investment-grade tenants [37] Question: Timeline for Building 2 and penalties for delays - Building 2 is progressing well, with a timeline of approximately twelve months, and standard lease penalties apply for late delivery [44][48] Question: Focus on owning infrastructure versus powered shells - The company is focused on full-stack ownership of buildings rather than powered shells, which are less appealing as a public company model [52] Question: Progress on sales tax in South Dakota - No progress has been made on sales tax, with focus currently on a large campus in North Dakota [54]

Core Insights - Applied Digital Corporation reported financial results for the fiscal fourth quarter and fiscal year ended May 31, 2025, highlighting significant developments in its operations and financial performance [1][2]. Financial Performance - Fiscal Fourth Quarter 2025: - Revenues reached $38.0 million, a 41% increase from the prior year [6]. - Net loss attributable to common stockholders was $26.6 million, down 25% from the previous year [6]. - Adjusted EBITDA was $1.0 million, compared to a loss of $0.2 million in the same quarter last year [22]. - Fiscal Year 2025: - Total revenues increased by 6% to $144.2 million, driven by the full capacity operation of the 180 MW Data Center Hosting Facility [23]. - Net loss attributable to common stockholders was $161.0 million, an increase of 118% from the previous year [30]. - Adjusted net loss attributable to common stockholders was $12.5 million, slightly down from $12.7 million in the prior year [31]. Operational Updates - The Company has signed two 15-year lease agreements with CoreWeave for 250 MW of critical IT load, expected to generate approximately $7 billion in contracted revenue [7][8]. - An additional 150 MW lease option has been exercised by CoreWeave, potentially increasing total contracted revenue to approximately $11 billion [7][8]. - The first 100 MW facility at the Polaris Forge 1 campus is scheduled to be operational in Q4 2025, with plans for further expansions [9][10]. Strategic Initiatives - The Company is focusing on enhancing its data center design and operational efficiency, reducing projected build times from 24 months to 12-14 months [9]. - The innovative design features a closed-loop, direct-to-chip cooling system, aiming for a Power Usage Effectiveness (PUE) of 1.18 and near-zero water consumption [9]. - The strategic location in the Dakotas is expected to provide significant cost savings for customers, estimated at $2.7 billion over 30 years compared to other regions [9]. Market Position - The Company is actively marketing its multi-gigawatt pipeline to a diverse group of customers, leveraging strong relationships with major hyperscalers [11]. - The HPC Data Center Hosting business is positioned to deliver massive computing power for AI applications, with facilities designed for ultra-low-cost and high efficiency [10][12].

Core Insights - Applied Digital (APLD) achieved a 22% year-over-year revenue growth in Q3 of fiscal 2025, totaling $52.9 million, despite challenges in its Cloud Services segment [2][10] - The company is transitioning its business model, focusing on high-performance computing (HPC) hosting, particularly for AI infrastructure, while facing a decline in Cloud Services revenue [3][6] Financial Performance - Cloud Services segment revenues fell to $17.8 million due to a shift to on-demand capacity and technical issues, which have since been resolved [2][10] - Data Center Hosting segment revenues increased to $35.2 million, driven by full utilization of North Dakota facilities and favorable Bitcoin pricing [3][10] - APLD's aggressive capital expenditures range from $30 million to $50 million per month, with a total debt of $689 million [5][10] Strategic Developments - The construction of the Ellendale campus, a 400MW data center, is on schedule, with the first 100MW facility expected to launch in Q4 2025 [4] - APLD has secured significant funding, including $5 billion from Macquarie and $375 million from SMBC, to support its strategic pivot [4] - The company is experiencing strong leasing interest, with potential for a single anchor customer to occupy the entire initial build [4] Competitive Landscape - Digital Realty (DLR) is expanding its AI infrastructure with a $10 billion U.S. Hyperscale Data Center Fund, focusing on major metropolitan areas [7] - Equinix (EQIX) is also capitalizing on AI demand, with numerous projects underway and a strategy emphasizing high-density builds [8] Valuation and Estimates - APLD's shares have increased by 24.6% year-to-date, outperforming the industry growth of 4.5% [9] - The company trades at a forward price-to-sales ratio of 7.97X, significantly above the industry average and its five-year median of 1.47 [12] - The Zacks Consensus Estimate for APLD's fiscal 2026 earnings suggests a 67.7% year-over-year increase [14]